The Association of Bureaux De Change Operators of Nigeria has called for the Securities and Exchange Commission’s guidance and collaboration in harmonising the peer-to-peer forex sector in the country.
In an official courtesy visit to the newly appointed SEC Director General, Timi Agama, the President of the Association of Bureau de Change Operators of Nigeria, Aminu Gwadabe congratulated the SEC boss on his appointment by President Bola Tinubu and quickly highlighted that SEC regulates the sector that is a threat to the continued existence of BDCs in Nigeria through online virtual transactions platforms which gives access to millions of Nigerians to trade in foreign exchange without trace and accountability.
He also explained that ABCON has invested in requisite technology to ensure the continued existence of the business and preserve the integrity of the sub-sector.
He opined that the future of BDC’s business is digital currency.
The National President of ABCON said that the meeting with the SEC DG and the present executive board of the SEC was a follow-up on the earlier online virtual consultation.
Gwadabe explained that ABCON is the umbrella body for all licensed retail foreign exchange dealers established in 1991 to liaise with regulators, relevant stakeholders and security agencies for a transparent retail end forex market.
Gwadabe said, “As of today, over 34 million Nigerians are dealing in digital currency and the number is rising by about 9% with a huge market of $9 billion annually. There are thousands of multichannel virtual currency FX platforms and none is indigenous to Nigeria, adding that P2P represents individual to individual transaction.”
“To automate the entire foreign exchange retail market, ABCON has partnered with the Commodities Exchange Board, in building the platform knowing that they have sources of foreign exchange. ABCON is willing to work with SEC towards achieving full automation of the retail end of the foreign exchange market in Nigeria.
“Hence, in line with changing global business trends and ABCON’s compliance efforts towards technological innovation, the association on behalf of its membership would be pleased to be granted a license to operate in digital currency transactions. This would entail that whoever has USDT and wants to trade it should approach licensed BDCs for their transactions.”
Gwadabe said, “ABCON is the umbrella body for all licensed retail foreign exchange dealers, which came into existence in 1991. Our objective is to liaise with our regulators, relevant stakeholders and security agencies as one cannot divorce the retail exchange market from the ecosystem of foreign exchange market seeing that the BDC market is global and has been in operation before our independence. It has been there before the creation of the Central Bank of Nigeria.”
He explained that the system came under regulation in 1986 during the administration of former President Ibrahim Babangida, who felt the need to formalize the sector through the issuance of licenses by the then Ministry of Finance to formalize the informal sector.
The SEC Director General responded with a robust understanding of the ABCON chairman’s speech. He said, “I understand that ABCON is desirous of setting up a digital market platform with the intention to be part of the emerging digital currency ecosystem in Nigeria. We at the SEC are open to helping the sector grow for the love of the country therefore there will be meetings with the relevant departments of the SEC to detail methods and strategies that will strengthen the Naira through necessary innovative ideas as shared by ABCON.”
The SEC boss also reiterated that there are new rules put in place to accommodate local intellectuals to develop digital platforms therefore the SEC will cooperate with ABCON to achieve the desired objectives.
